Verify contractor information:
- Verify contractor name
- Verify contractor address
- Verify contractor identification number
- File 1099
You’ll want to make sure all your contractor information is in one place. Like with employees, you’ll want to verify your contractor’s name, address, and identification number. The ID number can be a contractor’s SSN, ITIN, ATIN, or EIN.
The cost of misclassification: Government figures estimate 25–30% of all employees are misclassified as independent contractors. But intentional or not, your client’s business could face serious legal and financial consequences for doing so.
Not sure if a worker is a contractor or an employee? Use this tool from Intuit to help you make the determination and avoid penalties.